Describes how major projects are secured and financed. Explains activities of the multilateral development banks in and other aid-funded projects.
Selling to the Government
Algerian government institutions, including ministries, agencies, and local governments, buy foreign-made goods and services through competitive or restricted tenders. Although the law on public tenders does not require state-owned companies to purchase goods and services through tenders, many do. For most security-related tenders, foreign bidders must deal directly with the procuring agency. Companies may also obtain tender requests through one of two Algerian government websites: BAOSEM and BOMOP.
Algeria has taken steps to improve the transparency of its contracting process. Most government contracts are awarded through a two-step tender process: technical bids are first reviewed to ensure compliance with tender requirements and to evaluate competing specifications, after which financial proposals are reviewed. Competitors are sometimes short-listed after the technical offers are opened, and sometimes companies are pre-qualified for large tenders, particularly in oil and gas development.
Military and security-related contracts are usually tendered on a restricted basis, wherein the Ministry of National Defense will ask pre-selected suppliers to bid on a request for a proposal. U.S. firms that want to send information about their goods and services to the Algerian military should contact the U.S. Commercial Service in Algeria.
U.S. companies should carefully adhere to all specific Algerian tender guidelines. Although Algeria is a member of the Arab League, there are no examples of U.S. firms impacted by Algeria’s adherence to the Arab League’s boycott against Israel.
U.S. companies bidding on Government tenders may also qualify for U.S. government advocacy. The Advocacy Center, a unit of the U.S. Commerce Department’s International Trade Administration, coordinates U.S. government interagency efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our worldwide U.S. Commercial Service network and interagency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Financing of Projects
For the most part, major infrastructure, civil engineering, and construction projects are fully funded by the Algerian government via six state-owned banks, which account for 90 percent of the assets in Algeria’s finance sector. The largest of these state banks, Banque Extérieure d’Algérie (BEA), the Banque Nationale d’Algérie (BNA) and the Credit Populaire d’Algérie (CPA), finance most large infrastructure projects of state-owned companies. The World Bank has no new projects planned, but the International Finance Corporation (IFC) continues to provide project financing in Algeria. In May 2021, President Abdelmadjid Tebboune signed a decree to validate Algeria’s admission to the European Bank for Reconstruction and Development (EBRD), and the EBRD gave Algeria authorization to subscribe to shares of its capital. There are not yet any EBRD-funded projects in Algeria, and the Development Finance Corporation and U.S. Export-Import Bank do not have projects in Algeria.